121.04 0.00 (0.00%)
After hours: 5:14PM EDT
|Bid||120.86 x 1000|
|Ask||121.25 x 800|
|Day's Range||118.72 - 121.30|
|52 Week Range||89.89 - 123.63|
|Beta (3Y Monthly)||1.44|
|PE Ratio (TTM)||22.09|
|Earnings Date||Oct 22, 2019|
|Forward Dividend & Yield||3.84 (3.14%)|
|1y Target Est||122.91|
The shipping industry is in crux position as retail is shifting from brick-and-mortar to online. This creates both an excellent opportunity for growth as well as new competitors like industry behemoth Amazon.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. FedEx Corp. Chief Executive Officer Fred Smith blamed the company’s disappointing outlook on a weakening global economy dragged down by President Trump’s trade war. Wall Street isn’t buying it.At least five analysts downgraded the shares, taking Smith to task for what Deutsche Bank AG called a series of “missteps’’ in recent years. The shares plunged Wednesday by the most in a decade.FedEx hasn’t moved fast enough to reduce capital expenditures and cut capacity at the air-shipping business, critics said. A $4.8 billion acquisition in Europe has turned into a money pit. And the courier is incurring extra costs to boost efficiency to handle the surge in e-commerce deliveries -- all while cutting longstanding ties with Amazon.com Inc.“While some may view this as the bottom in shares, we don’t see any support until management takes responsibility for recent performance and clearly articulates a credible path to better results,” said Deutsche Bank’s Amit Mehrotra, who downgraded the stock. “In the meantime, share will continue to melt lower, and rightfully so,” he wrote in a report titled “Lost confidence in FDX.”The shares tumbled 13% to $150.91 at the close in New York, the biggest drop since December 2008. United Parcel Service Inc. fell 1.1% while Deutsche Post AG slipped 1.2%.FedEx’s slide wiped out its year-to-date gain. Even before the drop, the shares were already lagging UPS and a Standard & Poor index of U.S. industrial companies.Deutsche Post responded to FedEx’s warning by saying that it hasn’t seen changes in volume trends since its most recent comments in August. UPS said it hasn’t detected a broad-based slump.“UPS has seen softening in some markets as customers react to trade uncertainty, but has not experienced broad dampening,” the Atlanta-based courier said in a statement. “The company continues to manage costs and adapt its network to take advantage of growth opportunities as sourcing patterns shift among markets.”FedEx surprised investors by slashing its profit outlook for the fiscal year ending in May to as low as $11 a share, 25% lower than analysts’ expectations. Smith and his lieutenants also drew fire for a combative conference call late Tuesday.While Smith asserted that “FedEx will unquestionably be the low-cost producer” for domestic air deliveries, the company said the new outlook didn’t count on any additional weakening in the global economy. In other words, there could be more downside.‘Lost Their Way’“They were saying, ‘Yes, it’s tough out there and challenging. These are the actions we’re going to take. Trust us,’ ” said Kevin Sterling, an analyst with Seaport Global Holdings. “They’ve kind of lost their way here for it seems like a year or so. People are becoming more skeptical.”FedEx cited global economic weakness “driven by increasing trade tensions and policy uncertainty,” and the company is hardly alone in feeling anxiety. The Business Roundtable’s CEO Economic Outlook Index fell in the third quarter to the lowest since late 2016, the group said Wednesday.More than half of CEOs said U.S. trade policy and retaliation from other countries had a negative effect on sales over the past year, while a third said it was having a similar impact on hiring.But FedEx took criticism from analysts for sticking with a capital-spending budget of $5.9 billion, including $350 million to finish the work to combine FedEx’s network in Europe with TNT Express, a Dutch-based company it bought in 2016.‘Execution Challenges’Whether those efforts turn into higher profit remains to be seen, said Todd Fowler, an analyst with KeyBanc Capital Markets, who also downgraded the shares.“We anticipate a ‘wait-and-see’ approach with respect to expected margin and earnings improvement given recent execution challenges,” Fowler said in a note to clients.What Bloomberg Intelligence Says:“FedEx is facing a number of near-term headwinds on top of the pressures from slowing economic growth.“While fiscal 2020 will be a transition year for the company, we still believe longer-term prospects should turn positive once benefits from TNT and investments in technology and equipment are realized.”\- Analysts Lee Klaskow and Adam Roszkowski\- Click here for the researchTNT is turning into a particular sore spot. An economic slowdown in Europe is hampering FedEx’s effort to turn around operations after what is already a slow, costly integration. Running both the TNT and FedEx networks drives up costs, Sterling said.“This global macro weakness couldn’t hit them at a worse time. They’re kind of getting exposed,” Sterling said. “The international weakness hit them faster than they realized. It was just three months ago that they lowered guidance and now again they’re coming back to do it. The ultimate question is when is the bottom.”\--With assistance from Richard Weiss, Bailey Lipschultz and Tony Robinson.To contact the reporters on this story: Thomas Black in Dallas at email@example.com;Sam Unsted in London at firstname.lastname@example.org;Chiara Remondini in Milan at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, ;Beth Mellor at email@example.com, Richard CloughFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
United Parcel Service Inc. said Wednesday that its iconic “Browns” uniform was getting a makeover to a more contemporary look, continuing the transformation of the uniform over the past 100 years.
The e-commerce revolution has boosted package shipments, but UPS earnings growth has been sluggish amid heavy investments. With Amazon a rising threat, is UPS stock a buy right now?
UPS said it is phasing in the first major redesign of the company's recognizable "Browns" corporate uniform since the early 1920s.
UPS “Browns,” one of the world’s most iconic and recognizable corporate uniforms, are getting a makeover. The updates are designed to improve driver comfort, safety and performance. UPS drivers are often referred to as industrial athletes, so many of the changes to the uniform include using performance fabrics with improved stretch for better range of motion.
Orlando will be one of several markets where United Parcel Services Inc. will ramp up hiring as we head into the holiday season. The Atlanta-based firm (NYSE: UPS) will hire 1,000 seasonal workers in Central Florida as part of a nationwide push for more than 100,000 seasonal employees. The full- and part-time seasonal positions come as the company is preparing for a greater amount of parcels during the holiday season.
Dow Jones futures: The stock market rally neared highs even as Fed rate-cut odds fell to 50-50. Adobe, FedEx and Chewy fell on weak earnings or outlooks.
The charts of UPS and rival FedEx are quite different, with the former's technical signals indicating it could head higher.
FedEx Corp. (NYSE: FDX) said Sept. 16 it will not apply residential surcharges this peak shipping season on deliveries of standard-sized parcels, though it will impose surcharges on shipments that require extra handling or those consignments that are so outsized the company may refuse to handle them. The announcement marks the third consecutive year that FedEx will not apply peak surcharges on its standard parcel deliveries, the company said. FedEx will apply a $4.10 per package "additional handling" surcharge on U.S. express, and U.S. and international ground deliveries.
The UPS Store, Inc. is launching “Tell Your Tale,” a nationwide contest of stories written by young authors, in celebration of childhood literacy. A selection of stories will be published in a special book to be distributed at events surrounding the 2020 Rose Parade presented by Honda on Jan. 1, 2020, in Pasadena, California. The UPS Store, which won the parade’s top award last year for its eye-catching float, is participating once again in the iconic New Year’s Day procession.
As the shipping company reports Tuesday night, headwinds blowing from Amazon and China trade are strong, but there's a chance of an unexpected move to the upside or activist investor news.
Self-driving truck startup TuSimple said on Tuesday it raised an additional $120 million from investors to be used to expand long-haul services for truck fleets and jointly develop an autonomous commercial vehicle with truck makers and suppliers. TuSimple said the new funds were part of a round of fundraising that was oversubscribed and reached a total of $215 million. The company's new investors include Chinese alternative investment firm CDH Investments, Hong Kong-based investment firm Lavender Hill Capital and Korean auto supplier Mando Corp. TuSimple said the latest investments bring its total funding so far to $398 million.
Software solution helps e-tailers give consumers more flexibility and control over package deliveries. Consumers will soon have the option to ship directly to more than 38,000 UPS Access Point locations in the U.S. and Europe. Streamlines UPS Access Point location lookup and label printing solutions, increasing convenience for consumers.
President Trump 'fast-tracked' the drone delivery industry, according to one executive, as Amazon, UPS and others enter the space.
UPS Inc (NYSE: UPS) has agreed to pay $8.4 million to resolve a civil dispute with the U.S. Government over allegations the company overcharged federal agencies for ground package deliveries. The U.S. Department of Justice (DOJ) claimed that between 2007 to 2014, UPS failed to provide the General Services Administration (GSA), the federal government's purchasing agency, with "lower prices that had been offered to another customer," which violates a price reduction clause in the contract and resulted in the government overpaying for delivery services. "Contractors are expected to carefully comply with the pricing requirements of GSA contracts and other federal contracts," Assistant Attorney General Jody Hunt said on Sept. 13, in announcing the settlement.
United Parcel Service Inc has agreed to pay the United States $8.4 million to resolve allegations it overcharged federal agencies for package delivery services, the U.S. Justice Department said on Friday. The settlement resolves allegations that from 2007 to 2014, UPS failed to follow a General Services Administration (GSA) contract requiring it to provide agencies with certain agreed discounts, resulting in the government paying more than it should have for package deliveries, the government said. The Justice Department said there has been no determination of liability in the settlement that covers ground delivery service.
Investments toward improving efficiencies at FedEx's (FDX) Ground unit are likely to increase costs, which is a concern in first-quarter fiscal 2020.
The first-quarter fiscal 2020 results of FedEx's (FDX) largest revenue-generating unit are likely to be hurt by a drop in revenues from international priority packages.
Viscelli also called into question the benefits of digital freight matching platforms for independent contractors, arguing that the entrepreneurial benefits won't compensate for the heightened competition. "The history of the industry suggests really dense markets make the industry super competitive," said Viscelli, whose cheerful tone belied the critique he unspooled during a recent interview with FreightWaves.